Bill Text: CA SB1110 | 2009-2010 | Regular Session | Amended
Bill Title: Sales and use taxes: use tax administration.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-04-20 - Set for hearing April 28. Hearing postponed by committee. [SB1110 Detail]
Download: California-2009-SB1110-Amended.html
BILL NUMBER: SB 1110 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 8, 2010
INTRODUCED BY Senator Runner
FEBRUARY 17, 2010
An act to amend Section 6593.5 to the Revenue and
Taxation Code, relating to taxation. An act to amend
Sections 6225, 6451, 6459, and 6592 of, and to add Sectio
ns 6225.1 and 6225.2 to, the Revenue and Taxation Code, relating to
taxation, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1110, as amended, Runner. Sales and use tax: State
Board of Equalization: administration: interest.
taxes: use tax administration.
The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property. In order to facilitate
the collection of the use tax, a qualified purchaser, as defined, is
required to register with the State Board of Equalization and to
report and pay by April 15 the use tax owed for the previous calendar
year, as provided.
This bill would instead require a purchaser that is subject to the
tax imposed by the Personal Income Tax Law to file a return for use
tax by April 15, following the close of the calendar year, and to
file a return made on the basis of a fiscal year by the 15th day of
the 4th month following the close of the fiscal year. The bill would
require a purchaser that is subject to the tax imposed by the
Corporation Tax Law to file a return for use tax by March 15,
following the close of the calendar year, and to file a return filed
on the basis of the fiscal year by the 15th day of the 3rd month
following the close of the fiscal year. The bill would authorize the
board to grant a reasonable extension of time for filing a return
under those provisions, as specified, and would delay the imposition
of any authorized penalties for taxpayers subject to those
requirements until on or after March 16, 2011. The bill would declare
that its provisions and retroactive application serve a public
purpose, as specified.
This bill would declare that it is to take effect immediately as
an urgency statute.
The Sales and Use Tax Law requires the payment of interest at a
specified rate on a failure to timely pay taxes, specified
prepayments, and amounts collected as tax under that law, from the
date on which those amounts became due and payable to the state until
the date of payment. That law authorizes the State Board of
Equalization, in its discretion, to relieve all or any part of
interest imposed under specified circumstances.
This bill would make a technical, nonsubstantive change to that
authorization provision.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6225 of the Revenue
and Taxation Code is amended to read:
6225. (a) In order to facilitate the collection of use tax
imposed by this part, a qualified purchaser shall register with the
board on a form prescribed by the board and shall set forth the name
under which the qualified purchaser transacts or intends to transact
business, the location of the qualified purchaser's place or places
of business, and other information as that
the board may require.
(b) Article 1 (commencing with Section 6451) of Chapter 5 of this
part shall apply to a qualified purchaser, except that a return
showing the total sales price of the tangible personal property
purchased by the qualified purchaser, the storage, use, or other
consumption of which became subject to the use tax during the
preceding calendar year, and which was not paid to a retailer
required to collect the tax or which was not paid to a retailer the
qualified purchaser reasonably believed was required to collect the
tax, shall be filed, together with a remittance of the amount of the
tax due, with the board on or before April 15
in accordance with paragraphs (1) and (2) .
(1) For a purchaser subject to the tax imposed by Part 10
(commencing with Section 17001), a return filed pursuant to this
section on the basis of the calendar year shall be filed on or before
April 15, following the close of the calendar year. A return made on
the basis of a fiscal year shall be filed on or before the 15th day
of the fourth month following the close of the fiscal year.
(2) For a purchaser subject to the tax imposed by Part 11
(commencing with Section 23001), a return filed pursuant to this
section on the basis of the calendar year shall be filed on or before
March 15, following the close of the calendar year. A return made on
the basis of the fiscal year shall be filed on or before the 15th
day of the third month following the close of the fiscal year.
(c) A "qualified purchaser" means a person that meets all of the
following conditions:
(1) The person is not required to hold a seller's permit pursuant
to this part.
(2) The person is not required to be registered pursuant to
Section 6226.
(3) The person is not a holder of a use tax direct payment permit
as described in Section 7051.3.
(4) The person receives at least one hundred thousand dollars
($100,000) in gross receipts from business operations per calendar
year.
(5) The person is not otherwise registered with the board to
report use tax.
(d) This section shall not apply to the purchase of a vehicle,
vessel, or aircraft as defined in Article 1 (commencing with Section
6271) of Chapter 3.5 of this part.
SEC. 2. Section 6225.1 is added to the
Revenue and Taxation Code , to read:
6225.1. (a) For purposes of administering Section 6225, the board
may grant a reasonable extension of time for filing a return in the
manner and form it determines. Except for a taxpayer residing or
traveling abroad, an extension of time shall not be granted for more
than six months. For a taxpayer residing or traveling abroad, a
return shall be filed no later than the 15th day of the sixth month
following the close of the taxable year, unless the requirements for
an extension have been fulfilled on or before that date.
(b) An extension of time granted pursuant to this section is not
an extension of time for payment of the tax required to be paid on or
before the due date of the return without regard to extension.
Penalties shall be imposed, as provided by law, without regard to any
extension granted under this section.
(c) A reasonable extension for payment of tax required by Section
6225 may be granted by the board whenever in its judgment good cause
exists.
SEC. 3. Section 6225.2 is added to the
Revenue and Taxation Code , to read:
6225.2. Any penalties authorized to be imposed under this part
for any period for which taxpayers are subject to the registration
and filing requirements of Section 6225 shall not be imposed until on
or after March 16, 2011.
SEC. 4. Section 6451 of the Revenue and
Taxation Code is amended to read:
6451. The Except as provided in Sections
6225 and 6225.1, the taxes imposed by this part are due and
payable to the board quarterly on or before the last day of the month
next succeeding each quarterly period.
SEC. 5. Section 6459 of the Revenue and
Taxation Code is amended to read:
6459. (a) The Except as provided in
Section 6225, the board for good cause may extend for not to
exceed one month the time for making any return or paying any amount
required to be paid under this part. The extension may be granted at
any time provided a request therefor is filed with the board within
or prior to the period for which the extension may be granted.
Any person to whom an extension is granted shall pay, in addition
to the tax, interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date on which the tax would have been due without the extension until
the date of payment.
(b) The board may grant an extension for more than one month if
both of the following conditions occur:
(1) A budget for the state has not been adopted by July 1.
(2) The person requesting the extension is a creditor of the state
who has not been paid because of the state's failure to timely adopt
a budget.
Any extension granted under this subdivision shall expire no later
than the last day of the month following the month in which the
budget is adopted or one month from the due date of the return or
payment, whichever comes later.
Any person to whom an extension has been granted under this
subdivision shall pay, in addition to the tax, interest at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the tax would have
been due without the extension until the date of payment. However,
no interest shall be due on that portion of the payment equivalent to
the amount due to the person from the state on the due date of the
payment.
SEC. 6. Section 6592 of the Revenue and
Taxation Code is amended to read:
6592. (a) If Except as provided in
Section 6225.2, if the board finds that a person's failure to
make a timely return or payment is due to reasonable cause and
circumstances beyond the person's control, and occurred
notwithstanding the exercise of ordinary care and the absence of
willful neglect, the person shall be relieved of the penalties
provided by Sections 6476, 6477, 6479.3, 6480.4, 6480.8, 6511, 6565,
6591, 7051.2, 7073, and 7074.
(b) Except as provided in subdivision (c) any person seeking to be
relieved of the penalty shall file with the board a statement under
penalty of perjury setting forth the facts upon which he or she bases
his or her claim for relief.
(c) The board shall establish criteria that provides for efficient
resolution of requests for relief pursuant to this section.
SEC. 7. The Legislature finds and declares that
this act and its retroactive application are necessary to serve a
public purpose by ensuring the fair and equitable treatment of
taxpayers.
SEC. 8. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to address problems relating to administration and
collection of the use tax and to prevent undue hardship to taxpayers,
it is necessary that this act take effect immediately.
SECTION 1. Section 6593.5 of the Revenue and
Taxation Code is amended to read:
6593.5. (a) The board, in its discretion, may relieve all or any
part of the interest imposed on a person by this part under the
following circumstances:
(1) Where the failure to pay tax is due in whole or in part to an
unreasonable error or delay by an employee of the board acting in his
or her official capacity.
(2) Where failure to pay use tax on a vehicle or vessel registered
with the Department of Motor Vehicles was the direct result of an
error by the Department of Motor Vehicles in calculating the use tax.
(b) For purposes of this section, an error or delay shall be
deemed to have occurred only if no significant aspect of the error or
delay is attributable to an act of, or a failure to act by, the
taxpayer.
(c) Any person seeking relief under this section shall file with
the board a statement under penalty of perjury setting forth the
facts on which the claim for relief is based and any other
information that the board may require.
(d) The board may grant relief only for interest imposed on tax
liabilities that arise during taxable periods commencing on or after
July 1, 1999.
